MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
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Chapter 7, Problem 4RQ
To determine
Calculate government expenditure.
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If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports are – (negative) $10 billion, government purchases are $30 billion, sales of second-hand items are $8 billion, and gross investment is $35 billion, what is the country’s GDP for the year?
Select one:
a. $125 billion
b. $85 billion
c. $95 billion
d. $105 billion
Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = − $10 billion. What is the value of G?
$30 billion
$0
$10 billion
$20 billion
All values below are in trillions of dollars
Household Consumption
$11.9
State & Local Government Expenditures
$1.46
Imports
$2.04
Gross Private Investment
$4.08
Federal Government Expenditures
$2.80
Payments of Factor Income to Other Countries
$3.21
Depreciation
$0.99
Exports
$1.57
Receipts of Factor Income from Other Countries
$3.79
If GDP is $20 trillion, GNP is $________trillion.
Chapter 7 Solutions
MACROECONOMICS (LL)
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Prob. 8RQCh. 7 - Prob. 9RQCh. 7 - Prob. 10RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8P
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- Which definition best describes real GDP? a)the production of goods and services valued at current prices b)the production of goods and services valued at constant prices c)the production of goods and services valued at tomorrow's prices d)the general change in prices of goods and services from one period to the nextarrow_forwardPlease provide me ans for part f only. Q) Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year.a. What is nominal GDP for each of these three years? b. What is real GDP for each of these years? c. What is the GDP deflator for each of these years? d. What is the percentage growth rate of real GDP from year 2 to year 3? e. What is the inflation rate as measured by the GDP deflator from year 2 to year 3? f. In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?arrow_forwardHow will an increase in the amount of scholarships and pensions given by the government affect the level of GDP? a. Increase in the level of unemployment b. Increases the level of gross domestic capital formation c. No effect d. Increase in net exportsarrow_forward
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